Hidden costs checker
Mortgage payments are only part of the story. This adds in taxes, insurance, HOA, and maintenance — the costs that catch a lot of first-time buyers off guard.
Maintenance is estimated as a percentage of home value per year, based on the home's age — older homes typically need more upkeep. Your actual costs will vary.
The mortgage payment a lender quotes is principal and interest. The amount you'll actually spend each month is higher. This checker adds the costs most first-time buyers underestimate, so you can budget for the real number before you make an offer.
Mortgage insurance (PMI or FHA MIP) if you put less than 20% down, utilities (often higher than in an apartment), lawn and snow care, and furnishing a larger space. Add these to get your full monthly number.
On a $350,000 home with 10% down at 6.5%, principal and interest is about $1,991 a month. Adding $350 for taxes, $150 for insurance and $350 for maintenance brings the real cost to about $2,841 — over 40% more than the mortgage payment alone.
Plan for 1% to 2% of the home's value each year. A 30-year-old home may need closer to 2% or more because roofs, HVAC systems and water heaters reach the end of their life.
Usually yes. Most lenders collect property taxes and insurance monthly through an escrow account and pay the bills for you.
Many areas reassess a home's value when it sells. If the previous owner had a lower assessment, your tax bill can rise in the first year or two.